Fort Walton Beach Ordinance — 2168--Amending COO Section 2.06.03 Firefiighters' Pension Trust Fund — reading text

subsection, brokerage commissions, transaction costs, and management fees for the immediately preceding fiscal year shall be determined for each year by the investment consultant pursuant to contracts with fund managers as reported in the custodial statement. The investment consultant shall report these annual contractual fees to the Board. The investment consultant shall also report the net investment return for each manager and the net investment return for the total plan assets. C. No Right to Allocation. The fact of allocation or credit of an allocation to a Member's Share Account by the Board shall not vest in any Member, any right, title, or interest in the assets of the trust or in the Chapter 175, Florida Statutes, tax revenues except at the time or times, to the extent, and subject to the terms and conditions provided in this Section. d. Members and DROP participants shall be provided annual statements setting forth their share account balance as of the end of the Plan Year. Forfeitures. Any Member who has less than ten ( 10) years of Credited Service and who is not otherwise eligible for payment of benefits after termination of employment with the City as provided for in subsection ( 5) shall forfeit his individual Member Share Account. Forfeited amounts shall be included and used as part of the Chapter 175 tax revenues for future allocations to individual Member Share Accounts on each valuation date in accordance with the formula set forth in subsection ( 3) a.  Any Member who has more than ten ( 10) years of Credited Service and terminates employment with the City as a deferred vested Member shall forfeit his individual Member Share Account if he elects to withdraw his accumulated contributions from the Plan or does not survive to his otherwise normal or early retirement date. Forfeited amounts shall be included and used as part of the Chapter 175 tax revenues for future allocations to individual Member Share Accounts on each valuation date in accordance with the formula set forth in subsection ( 3) a. Eligibility For Benefits. Any Member ( or his Beneficiary) who terminates employment as a Firefighter with the District or who dies, upon application filed with the Board, shall be entitled to be paid the value of his individual Member Share Account, subject to the following criteria: a. Retirement Benefit. 1. A Member shall be entitled to one hundred percent ( 100%) of the value of his share account upon normal or early Retirement pursuant to Section 2. 06. 03( f), or if the Member enters the DROP, upon termination of employment. 2. Such payment shall be made as provided in subsection ( 6) b. Termination Benefit. 1. In the event that a Member' s employment as a Firefighter is terminated by reason other than retirement, death or disability, he shall be entitled to receive the value of his share account only if he is vested in accordance with Section 2. 06. 03( i) and he has commenced a monthly Retirement Benefit at his otherwise normal or early retirement date pursuant to Section 2. 06. 03( f). 2. Such payment shall be made as provided in subsection ( 6). C. Disability Benefit.  1. In the event that a Member is determined to be eligible for either an in-line of duty disability benefit pursuant to Section 2. 06.03( h), subsection ( 1) or a not -in-line of duty disability benefit pursuant to Section 2. 06. 03( h), subsection ( 3), he shall be entitled to one hundred percent ( 100%) of the value of his share account. 2. Such payment shall be made as provided in subsection 6. d. Death Benefit. 1. In the event that a Member or DROP participant dies while actively employed as a Firefighter, one hundred percent 100%) of the value of his Member Share Account shall be paid to his designated Beneficiary as provided in Section 2. 06. 03( g). 2. Such payment shall be made as provided in subsection 6. Payment of Benefits. If a Member or DROP participant terminates employment for any reason or dies and he or his Beneficiary is otherwise entitled to receive the balance in the Member's share account, the Member's share account shall be valued by the plan's actuary on the next valuation date as provided for in subsection 3. above, following termination of employment. Payment of the calculated share account balance shall be payable as soon as administratively practicable following the valuation date, but not later than one hundred fifty ( 150) days following the valuation date and shall be paid in one lump sum payment. No optional forms of payments shall be permitted. Benefits Not Guaranteed. All benefits payable under this Section 2. 06.03( bb) shall be paid only from the assets accounted for in individual Member Share Accounts. Neither the City nor the Board shall have any duty or liability to furnish any additional funds, securities or other assets to fund share account benefits. Neither the Board nor any Trustee shall be liable for the making, retention, or sale of any investment or reinvestment made as herein provided, nor for any loss or diminishment of the Member Share Account balances, except due to his or its own negligence, willful misconduct or lack of good faith. All investments shall be made by the Board subject to the restrictions otherwise applicable to fund investments.  Notional Account. The Member Share Account is a notional account, used only for the purpose of calculation of the share distribution amount. It is not a separate account in the System. There is no change in the System' s assets, and there is no distribution available to the Member or DROP participant until the Member's or DROP participant' s termination from employment. The Member or DROP participant has no control over the investment of the share account. No Employer Discretion. The share account benefit is determined pursuant to a specific formula which does not involve employer discretion. Maximum Additions. Notwithstanding any other provision of this Section, annual additions under this Section shall not exceed the limitations of Section 415( c) of the Code pursuant to the provisions of Section 2. 06. 03, subsection ( o). IRC Limit. The share account distribution, along with other benefits payable from the System, is subject to limitation under Internal Revenue Code Section 415( b). SECTION 2: Specific authority is hereby granted to codify and incorporate this Ordinance in the existing Code of Ordinances of the City of Fort Walton Beach. SECTION 3: All Ordinances or parts of Ordinances in conflict herewith be and the same are hereby repealed. SECTION 4: If any section, subsection, sentence, clause, phrase of this ordinance, or the particular application thereof shall be held invalid by any court, administrative agency, or other body with appropriate jurisdiction, the remaining section, subsection, sentences, clauses, or phrases under application shall not be affected thereby.  SECTION 5: That this Ordinance shall become effective upon its adoption. Adopted: __ Npv,er,, b, 19"202 y 0t Nic Allegretto, Mayo In Attest: Approved as to legal form and sufficiency for f Fort Walton Beach, only. KimBarnes, City Clerk thz Kimberly Romano Kopp, City Attorney Additions are underlined;  FOSTER & FOSTER ACTUARIES AND CONSULTANTS Septamber 9, 2024 LTA FEN N_\ 10 Board of Trustees City of Fort Walton Beach Firefighters' Pension Board Re: City of Fort Walton Beach Municipal Firefighters' Pension Trust Fund Dear Board: In response to Sean Sendra' s email dated August 28, 2024, we have reviewed the proposed Ordinance amending Section 2. 06.03( bb) to reflect provisions regarding the allocation and distribution of Share Plan Accounts. We have determined that the adoption of this change will have no impact on the assumptions and provisions used in determining the funding requirements of the program. Because the above changes do not result in an immediate change in the valuation results, it is our opinion that a formal Actuarial Impact Statement is not required in support of its adoption. However, since the Division of Retirement must be aware of the current provisions of all public pension programs, it is recommended that you send a copy of this letter and a copy of the fully executed Ordinance to each of the following offices: Mr. Keith Brinkman Mr. Steve Bardin Bureau of Local Retirement Systems Municipal Police and Fire Division of Retirement Pension Trust Funds P. O. Box 9000 Division of Retirement Tallahassee, FL 32315- 9000 P. O. Box 3010 Tallahassee, FL 32315- 3010 If you have any questions, please let me know. Sincerely, Jose h L. Griffin, ASA, EA, MAAA cc: Sean Sendra, Board Attorney 13420 Parker Commons Blvd., Suite 104 Fort Myers, FL 33912 ( 239) 433- 5500 . Fax ( 239) 481- 0634 - www.foster-foster.com